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SC Iowa | Last winter I kept hearing that many bonds were "priced for armageddon"..ie; the spreads between them and treasuries indicated a high level of default---actually a level of default never seen...
This account is in my wifes 401K with 3M and offers the chance to move money over to Schwab and buy most of their mutual funds and ETF's.......so I did some research and decided to split the money up into three different bond ETF's since I lacked the conviction to put it in just one choice...
She already held some of Vangard's Ginny Mae fund and I am including this in the data.....The money was put to work on February 3, 2009 and these are the returns since that date for the following ETF's...was a fairly even split of money going in initially..
VFIIX---Vanguard Ginny Mae fund +6.5%
GVI---- Intermediate Govt Bond Fund +4.6%
LQD---- corporate bond fund +13.1%
HYG---- high yield corporate +29%
quite a range of returns, but the average for the last three on the list was 15.6% and I'm sure I would have signed up for less than that at the time!
Ray J | |
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Bond funds
